In FY26, income jumped and losses continued to shrink as Bengaluru-based e-commerce firm said over 70% of its code is now AI-generated. Meesho also said it saw strong user growth, deeper penetration beyond top cities and faster uptake of its AI voice shopping tool, Vaani.
Bengaluru-based e-commerce company Meesho has reported a strong March quarter, with total income rising 44.4% year-on-year to Rs 3,646.9 crore as the company expanded its AI-led operations across engineering, logistics, and advertising monetization. The SoftBank-backed platform also continued to reduce annual losses and posted major growth in users and orders during FY26.
The latest numbers show that Meesho is no longer just scaling its marketplace; it is also trying to build a more efficient, AI-first business model. For India’s e-commerce sector, this update is kaafi important because it reflects how technology is reshaping both growth and profitability.
What the Numbers Show
Meesho reported a loss of Rs 160 crore for the fourth quarter of FY26, against Rs 190.8 crore a year ago; however, the loss was higher than Rs 110.2 crore in the December quarter. For the full year FY26, total income rose 32.3 percent to Rs 13,099 crore from Rs 9,900.9 crore in FY25. The company’s loss narrowed sharply to Rs 572.3 crore from Rs 1,674.7 crore in the previous year.
The company also said net merchandise value, or NMV grew 43 percent YoY to Rs 11,371 crore in the March quarter. Annual transacting users grew 33% to 264 million in FY26 and annual orders grew 45% to 2.67 billion. These are big numbers, and they indicate that Meesho is seeing both reach and repeat usage.
How The AI Engine Works
One of the biggest takeaways from Meesho’s shareholder letter is that more than 70% of its code is now AI-generated. The company said AI is being used across code generation, testing, code reviews, production monitoring, and deployment fixes, which means it is deeply embedded in the software development lifecycle.
Platform experiments also doubled in Q4 compared with a year earlier, indicating product development cycles have become faster, Meesho said. In practice this means the company can try out features faster, fix problems faster, and push new tools into the market with less friction. That kind of automation can become a big advantage in a crowded e-commerce marketplace.
“More than 75% of orders are now coming from personalized feeds that predict what users want before they even type a search query,” said Founder and CEO Vidit Aatrey. This is a big sign that Meesho is leveraging recommendation systems and user behavior data to drive sales.
Growth in Voice Shopping
A major part of the story is Meesho’s AI-powered voice shopping assistant, Vaani. The tool, launched in Q4, allows users to shop in vernacular languages through conversational prompts, making the platform more accessible to users who are more comfortable speaking than typing.
Vaani achieved 1.5 million users in the first month and delivered a 22% conversion lift for Meesho adopters. That’s a meaningful number because it shows that AI is not only reducing internal costs but is also helping the company improve customer engagement and sales.
This is particularly important in a country like India where the diversity of languages is tremendous and many consumers still prefer a conversational buying experience. In smaller markets, a voice-first interface can reduce friction and make e-commerce more natural.
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Key Company Statements and Insights
During the analyst call, CFO Dhiresh Bansal said user frequency has continued to rise even as Meesho has expanded deeper into smaller Indian markets. He added that “frequency has been on an increasing trend for the last three years now” and said newer user cohorts are starting from a higher engagement baseline than earlier users. This story is covered by The Times Of India.
Bansal also said Meesho plans to increase automation across sort centers over the next few years while continuing to scale its advertising business. He noted that return on ad spend on Meesho remains “multiples” of what other e-commerce platforms offer, which helps attract more sellers to the marketplace.
Taken together, these comments show a company trying to build a more efficient and more attractive ecosystem for both buyers and sellers.
Meesho’s Rise in AI-Led Ecommerce and Expansion Beyond Metro India
Meesho has long positioned itself as a platform for value-conscious shoppers and sellers outside India’s biggest metros. In FY26, the company said 88% of its annual transacting users came from outside the top eight Indian cities.
That’s a big clue about where Meesho sees its future growth. Unlike some e-commerce rivals that lean heavily on large urban markets, Meesho is betting on tier-2, tier-3, and smaller-town India. This approach is not just commercially smart; it also fits the way digital commerce is spreading across the country.
Key Developments Over Time
Q4 FY26: Meesho’s total income rises 44.4% year-on-year to Rs 3,646.9 crore.
Same quarter: Loss narrows to Rs 160 crore from Rs 190.8 crore a year earlier.
FY26: Annual total income rises 32.3% to Rs 13,099 crore, and annual loss narrows sharply.
Q4 FY26: Vaani launches and crosses 1.5 million users in the first month.
FY26: Annual transacting users hit 264 million, and orders rise to 2.67 billion.
Why Meesho’s AI-Driven Growth Matters
This matters because Meesho is showing that AI can do more than cut costs—it can also improve product speed, customer experience, and monetization. For India’s e-commerce industry, that is an important shift because the next phase of competition may depend as much on automation and personalization as on discounts and logistics.
It also matters because the company’s growth is being powered by users beyond the big metros. That means digital commerce in India is becoming more inclusive and more regional, which could reshape how brands think about language, access, and discovery. Yeh trend is important hai because it shows the market is expanding in a way that better reflects India’s real consumer base.
From an investor perspective, narrowing losses while scaling revenue, orders, and AI tools improves Meesho’s story. Profitability is still not here, but the direction is better than before.
Why Meesho’s AI Shift Matters for India’s Ecommerce Market
For Indian readers, Meesho’s results are a good example of how tech companies are tailoring products for Bharat, not just urban India. The success of Vaani is particularly relevant because voice-based and vernacular shopping can make e-commerce easier for millions of users who may not be comfortable with English-heavy apps.
This also ties into a larger business trend in India: companies are using AI not just for flashy headlines but for practical benefits like faster coding, better logistics, and smarter recommendations. In that sense, Meesho is helping define what an AI-native Indian e-commerce platform can look like.
Meesho’s AI-Led Growth Shows How Ecommerce Is Evolving in India
Meesho’s latest results suggest a business that is moving in the right direction but still balancing growth with losses. The 44.4% jump in quarterly income is impressive, and the annual loss reduction is even more encouraging. However, the sequential widening of quarterly losses shows the journey to consistent profitability is not yet complete.
What stands out most is the company’s operating model. By making AI part of the development process and customer journey, Meesho is likely trying to improve speed, lower friction, and raise conversion rates at the same time. That is a smart strategy in e-commerce, where small improvements can create large gains at scale.
My view is that Meesho’s biggest advantage is not just its user count but its focus on India’s underserved internet shoppers. If it can keep translating that audience into repeat users and ad revenue, the company could strengthen its position significantly.
What’s Next for Meesho’s AI-Driven Growth Strategy
The next phase will likely focus on deeper automation, stronger ad monetization, and continued expansion into smaller markets. Meesho has already said it plans to increase automation in sort centers over the next few years, so operational efficiency should remain a top priority.
Investors and analysts will also watch whether Vaani continues to scale beyond its first-month spike. If voice shopping keeps improving conversion and engagement, it could become a meaningful growth lever rather than just a feature launch.
There will also be pressure on Meesho to keep losses under control while maintaining growth. In e-commerce, that balance often decides whether a company is seen as a fast-growing platform or a disciplined long-term business.
Conclusion
Meesho’s latest quarter shows a company that is growing fast, using AI aggressively and still working toward profitability. Its income rose sharply, losses narrowed over the year, and its AI tools are already shaping how users shop and how the company builds products.
The bigger story is that Meesho is trying to make e-commerce more local, more conversational, and more efficient. The strategy, if it works, could shape not only its own future but also the direction of India’s wider digital commerce market.
